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Private enterprises have become an important force in the construction of the “Belt and Road”

Source:CICCPS Release time:2018/9/21 14:06:49 
        With the deepening of the construction of the “Belt and Road”, the pace of private enterprises investing overseas has been accelerating, and it is playing an irreplaceable role. How to realize its own development in the construction of the “Belt and Road” requires not only “going out” but also “going well” has become a concern of many private enterprises.

       According to the research report of the top 500 private enterprises issued by the National Federation of Industry and Commerce, among the top 500 private enterprises in 2017, 274 participated in the “Belt and Road” construction, achieving overseas income (excluding exports) of more than 790 billion US dollars. According to the National Information Center, in 2017, the total import and export volume of private enterprises and the “Belt and Road” countries reached more than 600 billion US dollars, accounting for 43% of the total trade volume of the “Belt and Road” countries. Private enterprises have become an important force in participating in the construction of the “Belt and Road”. In this regard, Wang Yongqing, the full-time vice chairman of the National Federation of Industry and Commerce, believes that there are three main reasons: First, there is demand. Private enterprises are the people's economy and are closely related to people's lives. Developing the economy and improving people's livelihood are the common aspirations of the people of the developing countries and the endogenous driving force for Sino-foreign cooperation. Second, there is a market. Private enterprises are strong and need a larger market. They need to participate in the global value chain through open cooperation and cooperation with the vast number of developing countries, and achieve long-term sustainable development in the continuous exchange and integration, and ultimately benefit the people of all countries. Third, there are entrepreneurs to promote. In external cooperation, the government-led, market-led, and corporate-oriented trinity is the most effective and stable. Entrepreneurs are the most innovative groups and the most scarce resources in the market. Private enterprises are most sensitive to the market environment and can fully exert their willingness and ability to innovate.

       Of course, private enterprises still face many challenges in their overseas development. From the outside, there are still problems such as political risks, weak economic foundations, and unsound laws and regulations in relevant countries, which in turn poses many risks to the investment and operation of enterprises. From the inside, there are still shortcomings such as weak innovation ability, lack of talents, and information asymmetry, which have affected the promotion and implementation of related projects. Wang Yongqing suggested that private enterprises should work hard to improve their own competitiveness. It is necessary to improve the professionalism of overseas investment decisions, be good at using professional service personnel, and not blindly follow the trend. To achieve compliance and legal management, familiar with international rules, and gain an in-depth understanding of the laws and regulations, cultural customs, social customs, and industrial development of the investing countries. Enterprises must also have a sense of social responsibility and focus on international talent training.

       At present, the Chinese railway is a business card for Chinese enterprises to “go global”. Li Changjin, chairman of China Railway Group Co., Ltd., said that cooperation and win-win is the foundation, and overseas projects must focus on cooperation with the local. Overseas businesses must have the determination and determination to take root in overseas markets, so that they can gain something; they can't do low-level business, they need to be transformed and upgraded, and gradually upgrade; there are many risks abroad, they must have a sense of urgency, and always think about how to prevent and resolve risks; Brand building forms the brand competitiveness in overseas markets.

       At the same time, holding the group out to sea and forming a joint force is also an important way for private enterprises to "go out". Wang Yongqing said that on the one hand, private enterprises can cooperate with state-owned enterprises and learn from each other's strengths. Many central enterprises “going out” projects are in the form of contracting, including projects in the industrial chain such as design, engineering, after-sales service, etc. Private enterprises can participate in them, forming business contacts and industrial division of labor. On the other hand, private enterprises can also join forces to take the group out to avoid vicious competition and maximize economies of scale.

       Hao Guilin, chairman of China Railway Construction International Group Co., Ltd. said that central enterprises and private enterprises can complement each other in the industrial chain, and it is a good way to hold the group out of the sea. Enterprises can go out to sea, in the form of a joint or cooperative relationship, but they will be subject to certain factors: first, corporate culture conflicts, each enterprise has its own culture, and the decision-making system is different; secondly, corporate appeals are different. . In response to these differences, we must find an effective solution and do a good job of "taking the group out to sea".

       Song Zhiping, chairman of China National Building Material Group, said that the cooperation between central enterprises, local state-owned enterprises and private enterprises is the biggest advantage of Chinese enterprises. This cooperation supports economic development in China and will support the construction of the “Belt and Road” overseas.
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